Villa Deposit Frequently Asked Questions
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Villa Deposit FAQ
Below you will find the answers to many of the most commonly asked questions regarding placing a deposit on a villa.
There are several built in safeguards to protect you in case of an unforeseen event, or you simply change your mind.
How do I secure a villa and what does that mean?
Once you have identified the villa that you would like, you will need to complete a Letter of Intent
and pay a holding deposit of $5,000 which will be paid into our solicitors’ trust account. Once you have done this, the selected Villa will not be offered to any other interested purchaser. Following payment of the holding deposit the letter of intent will be sent by Cardow & Partners to our Solicitors UBK Lawyers who will then provide to you a fully completed Disclosure Statement in respect to the Villa that you have chosen and will forward to your lawyer an Agreement for Lease.
Does this holding deposit protect me from any Villa price rises during the construction period?
Another benefit of paying a holding deposit on the villa is that the price for that villa will then be locked in.
Do I need a lawyer to assist me with the purchase of a 99 year sub-lease of my villa?
We encourage you to seek independent legal and financial advice from a legal practitioner familiar with the Retirement Village lLegislation in respect to the documents you will be required to enter. A local solicitor, Gordon Abbott of G L Abbott & Co has that experience; or you may obtain from the Law Society of NSW the name of such a solicitor.
What happens to the holding deposit?
This will be held in our Solicitors’ trust account and will form part of the 10% deposit that you will be required to pay when you enter the Agreement for Lease.
Can I get the holding deposit back if I change my mind about going ahead with a purchase?
Yes, as noted above and prior to you entering the Agreement for Lease, the holding deposit is fully refundable in circumstances where you decide not to proceed with the purchase of the Villa. In these circumstances you will need to notify us in writing that you require the holding deposit to be refunded to you and we will arrange for our Solicitors to attend to the refund.
After I have paid my 10% deposit and entered into a contract to purchase a Villa, can I change my mind; and, what happens to my deposit?
Provided that you have not entered into occupation of the Villa, the Agreement for Lease provides a 7 day cooling-off right in the event that you change your mind about proceeding. If you provide a notice within the 7 day cooling off period indicating that you no longer wish to proceed you will be entitled to receive a full refund of the 10% deposit you paid when you entered the Agreement for Lease. If you change your mind after the 7 day cooling-off period you will forfeit the 10% deposit you have paid.
When will I be allowed to enter into occupation of my villa?
Once Coffs Harbour City Council issues the interim occupation certificate for the Villa you will be
required to enter a Sub-lease and a settlement date will be appointed at which time you will pay the balance of the Ingoing Contribution for the Villa. Following payment of the balance of the Ingoing Contribution and receipt by our Solicitors of the signed Sub-lease and other documents required to be entered into (the “Settlement”) you will be allowed to take occupation of the villa.
If I change my mind after having completed the purchase of my villa, can I get out of the contract and get my money back?
The Retirement Villages Act provides for a “settling-in period” which is a period of 90 days after you have paid your Ingoing Contribution and moved into the Villa. If, during this 90 day period you change your mind, you must vacate the Villa and the Sub-lease will be terminated. Once the Villa has been resold you will be entitled to receive the Ingoing Contribution that you paid less the fair market rent amount for the period of your occupation of the Villa and the prescribed administration fee.
If I change my mind after having purchased my villa and I want my money back – do I have to pay any penalties?
As noted above you will be entitled to repayment in full of the Ingoing Contribution that you paid
less the fair market rent for the period between the Settlement of the matter and the date you
vacated the Villa. The fair market rent amount will be included in the Sub-lease that you signed to
enter the Villa. The Act also allows a deduction of an administration fee and the amount of that fee is prescribed by the Act, currently an amount of $200.00.
Are you wondering how to get here?
Email or Call Solitary Islands Village
Answers to common questions.
SOLITARY ISLANDS VILLAGE
2 Mullaway Drive, NSW